Hi Joe,
The diameter of the selected tool much match the diameter of the hole features being contoured. The Hole Drilling operation just generates a peck-drilling toolpath, with only Z motions, using a proper drill bit. You can use an endmill instead but your results may vary depending on the geometry of the endmill and how well the flutes clear chips, and what parameters you use.
If you want to use a 1/8" endmill to cut 1/4" holes I would probably just use the Profile Milling operation with a non-zero Cut Width specified, so that it works its way outward. Or, a combination of the 2D Trochoidal Milling with an Offset to leave some stock, and then the Profile Milling operation to bring the holes to size.
Hope that helps. Cheers! :]
- Charlie









